Trading without stop-losses
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thread: Trading without stop-losses

  1. #1
    Junior Member anabexxod's Avatar
    14

    Trading without stop-losses

    Hi, every one!

    I have a question that anybody trade without stop-losses, and successed? Trading without stop-loss could be done? Has some opinion, plz comment here? thanks.

  2. #2
    Junior Member Fransuarwz64's Avatar
    29
    Im using micro
    utilizing stoploss just when I have to leave my forex trading.

  3. #3
    Should you trade with higher leverage you need to use stops. My entries are generally 1:1 (leverage), I don't use difficult stops there... It is all dependent on your system/approach.

  4. #4
    What is the benefit of not having a SL?

    I don't get it. I am a newbie, and -so far- I don't find any plus.

    Also I've noticed some previous posts express trading performance in terms of:

    1) percent of winning trades
    2) amount of pips.

    Again, it might be only because I am a newbie, but -as much as I can understand- the aim is:

    a) preserving your funds
    b) hopefully getting extra money.

    Issues I detect with performance measured according to 1): nothing is said about risk/reward ratio.

    Despite the fact that I am a newbie,...
    You will find choices to trading one place in and one place out. Trading becomes distinct After you may think dimensional, or more than one transaction to a position. It's a different thought and reasoning process. If you may think, ok this transaction is x ray pips in the hole, what do I do?
    1. Take a loss SL
    2. How do I bring this commerce back . Where do I reenter to zero this transaction out?

    I am saying this, there are different techniques to trading than one place in and one place out. I believe in a string of trades within a period of time. I once did a series of trades with the aud/jpy which consisted of about 15 transactions more than a three week period. The total outcome of those trades ended up in profit. When they had been done by me at the normal thinking of one trade in, one trade it out would have been a succession of losses. Anyways, when you become tired of losing and trying to get it back, then losing everything back or winning for some time, there are choices. You can learn how to countertrade a losing commerce back to zero rather. It does take a different thought process and method of trading although It's a trading ability not recklessness.

  5. #5
    Junior Member ampi_gg's Avatar
    15
    It is possible to learn to countertrade a losing trade back to zero rather than taking a SL. It will take a different thought process and approach to trading although it is a trading ability.
    Sorry I don't get it.

    So far as I can know, I don't think it is always possible to'countertrade' a losing trade, if the market keeps going against you; unless you've got an infinite wealth (not my case, unfortunately).

    Of course you might have a fantastic exposure on the market, averaging your posture, but -again- that necessarily increases the risk entailed and therefore- even when successful for the majority of the times, might be catastrophic sufficient for this 1 time when it does not work.

    I don't see other ways of'countertrading', since -based on fact- you can not do anything to affect the market.

    If there are other ways, I can not see them; but still I don't understand why taking a reduction needs to be observed in a so lousy way, as long as the reduction is small.

    I would rather take several small losses in a really probably scenario; rather than (at a really unlikely one) taking one devastating loss.

    My way of figuring my trading would be using no-time horizon. I like it, I like doing it simulating it with no cash and attempting to finesse out my observations (or hard them) and, when I want to do that with actual cash, I have -original - to reduce my losses. Because I'm on the game that is actual so long as my money are around the table. Moreover since my objective is portfolio optimization, I'm not wiling to take a hug drawdown with a single (or few) transaction (s).

    That is nothing related to what you read in forums (still many opinions are very valuable to me and precious), it is pure chance. No system is 100% accurate and when n is the number of transactions you're in, no matter how accurate your system may be, there is always an n big enough so you will loose. That is my way of understanding it; that is the reason why I do always use SL (even in simulations).

  6. #6
    Quote: As far as I can understand, I don't think it's possible to'countertrade' a losing trade, if the market keeps on going against you; unless you've got an infinite wealth (not my case, unfortunately).

    There's 1 truth that is 100% true: the market always 100% of their time retraces. It is the truth I discovered accurate about Forex and you do not need wealth to trade it. I typically trade 500-1000 dollars so that my wealth is not infinite. So it's likely to cancel trade every trade. (there are some rare exceptions where you can bail out or better yet hedge and await the market to go back to normal, but they are extremely rare) But like anything else in existence, it's a skill that must be practiced and mastered.

  7. #7
    Member Fuark's Avatar
    41
    Quote: As far as I can understand, I do not think it's always possible to'countertrade' a losing trade, when the market keeps on going against you; unless you have an infinite prosperity (not my case, unfortunately).

    There's one truth that is 100% authentic: the market consistently 100% of their time retraces. It is the truth I found true about Forex and you don't need unlimited wealth to exchange it. I usually exchange 500-1000 dollars so that my prosperity isn't infinite. So it's likely to cancel trade every transaction. (there are some rare exceptions where you...
    can it be safe to say that you subscribe to the TAF approach... consistently having a bigger stick and skewing the averaging-down procedure? From everything you have said I would bet money this is the case.

  8. #8
    is it safe to say you subscribe to this TAF strategy... always having a bigger stick and skewing the averaging-down procedure? From everything you have said I would bet money this is the case.
    I attempted to go through FF and see what you meant by averaging down and I didnt find any particulars however a lot of unwanted genralities. I guess conceptually they are comparable but I have a particular plan called the 2.4.2 retrieval system. It has not one of which I could discover in any talks, trade direction and rules. I have specific places I shut out a trade to get a reduction if neccessary and areas my counter transactions are added by me also. I will also add to hedge a trade to return later when the market is much more favorable and ways to escape. Hedging is sort of a last resort when a transaction is becoming bad and the market is not likely to do what you want to get out. I call it moment that is freezing. Then days, or weeks later you return and reverse the harm of this transaction. Hedging is a tool that is superb if you know how to utilize it. You freeze time till you return to a market you know how to trade or you also make other profits to constitute the reduction of your own hedge or reduce the loss. I just want to point out that there are different things you may use rather than SL. But once more they are night skills and wont be heard fast or through the but they may be learned. Individuals who follow my threads know I'm big on trading little lots versus your balance. Live to trade another day, trade in a way that doesnt blow your account. My earnings are modest.

  9. #9
    Member Fuark's Avatar
    41
    Me thinks I was right. Slimming down is depended upon, but there are many ways to skin the cat and if most are getting it wrong then something a little creative is not a terrible thing. I guessed you for a TAF thread as your approach bears similarity to that which we've observed in the thread... in which averaging-down is considered'rescuing'.

    But then again what do we know. According regulars there no one understands anything except them and their thread starter.

    The problem with hedging is that it eats into margin, based on the size of the rankings. The flipside is that you may get the opportunity.

  10. #10
    Member xwta's Avatar
    35
    Do not reccommend it... something to consider what happens when your holding a position over weekend if price gaps down or up against you?

    Mentally you'll never recover when price goes against you several hundred pips. . .you will keep adding to positions expecting to average down.

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